Fast Food, Inc., has purchased a new donut maker. It cost $16,000 and has an estimated life of 10 years. The following annual donut sales and expenses are projected (Ignore income taxes.):

Sales		$ 23,100
Expenses:
Flour, etc., required in making donuts	$ 10,000
Salaries	6,000
Rent	1,600	17,600
Net operating income		$ 5,500

Assume cash flows occur uniformly throughout a year except for the initial investment.

The payback period on the new machine is closest to:

Group of answer choices

2.8 years

2.9 years

5 years

1.4 years